Right. I'm not talking about Anonymous FTP, which is still useful. I am talking about setting up FTP paired with regular shell accounts. That's where the security vulnerability comes in and transmitting login credentials unencrypted is a security vulnerability even if the same also goes for the data.

I haven't tagged the questions on the Forums for retrieval, but about every 2 or 3 days there is a user who is setting up FTP for login using the system usernames/passwords. From time to time I ask how they got fixated on FTP and the answer is usually the 10.10 server guide. So this report is a request to add a line or two to the old guide because it is steering beginners wrong.

So let's fix the 10.10 guide with a line or two pointing to SFTP.

That said, I can contribute to the 12.04. Please point me to the wiki where it is being drafted.

See the linked MP on the FTP section. Segments of the larger Lars Merge Proposal were split out into smaller Merge proposals for the 12.04 serverguide. However not all of the original ftp section was included.
As the Merge Proposal was aceepted, I am setting this bug to "fix commited", and intend to set it to "fix released" at the proper time. Feel free to debate otherwise.